dividend yield
Definition
The yield a company pays out to its shareholders in the form of dividends. It is calculated by taking the amount of dividends paid per share over the course of a year and dividing by the stock's price. For example, if a stock pays out $2 in dividends over the course of a year and trades at $40, then it has a dividend yield of 5%. Mature, well-established companies tend to have higher dividend yields, while young, growth-oriented companies tend to have lower ones, and most small growing companies don't have a dividend yield at all because they don't pay out dividends.
This content can be found on the following page:
http://www.investorwords.com/1523/dividend_yield.html
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
Related terms:
series, yield advantage, high yield
'dividend yield' appears in the definitions of these other terms on BusinessDictionary.com:
equity fund, Garman Kohlhagen model, growth investing, fixed income security
Related Research Articles from the InvestorGuide.com University
Stock Actions What are the different types of stock actions? Read about dividends, splits, and buybacks. Learn the consequences and the reasoning behind these actions.

Analysts and Earnings Estimates Learn about analyst reports, buy and sell recommendations, earnings estimates and projections, earnings whispers, and investment bank conflicts of interest.

Choosing a Stock Which companies should I invest in? Learn how to find a company, gather the research, and do the analysis. Also gives suggestions of things to look for while conducting this process.

Related Resources from InvestorGuide.com
Stock of the Day Newsletter Learn about stocks that are making headlines today by signing up for our free newsletter.
Stock Research Tool Using our stock research tool, you have access to our stock tracker, quotes, interactive charts, news, analysis and profile information. Click here to use our stock research tool or enter a stock ticker here:
Featured Sponsor
|